How does Carta handle tax reporting for equity?

Carta provides a comprehensive solution for managing equity, including tax reporting for its users. The platform simplifies the process of tracking and reporting stock options, restricted stock, and other equity compensation. One of the significant advantages of using Carta for tax reporting is that it consolidates the necessary information in a user-friendly format. When it comes to tax reporting, Carta generates the required tax documents that individuals may need, such as Form 3921 for Incentive Stock Options, Form 3922 for Transfer of Stock Acquired Through an Employee Stock Purchase Plan, and other relevant forms. The platform also captures key data points, such as acquisition dates, exercise prices, and fair market values, ensuring that information is readily available and organized for both employees and employers. However, it is important to understand that while Carta's system helps streamline the process, it does not provide personalized tax advice. Users are encouraged to consult a tax professional for advice tailored to their individual circumstances. For the most up-to-date information and specific features, it is beneficial to visit the current Carta website, where more details regarding tax reporting and related services can be found.